Mideast to Asia freights may rise on possible Syria intervention

29 August 2013 05:52  [Source: ICIS news]

SINGAPORE (ICIS)--Freight rates from Middle East to Asia will likely increase if a military intervention takes place in Syria as shipowners will move their vessels away from the Gulf, shipping sources said on Thursday.

Before deciding on a military intervention, western allies will await the results of a UN investigation on allegations that Damascus had used chemical weapons against civilians.

“Freight rates will likely shoot up in the Middle East. Vessel owners there will be keen to protect their ships and stay clear of any conflict,” said a southeast Asian-based shipbroker.

Asia or Europe will likely be possible destinations for such ships in the event of an intervention in Syria, possibly creating a glut of open positions in those regions.

“However, Asia and Europe may see more ships. This will dampen rates there,” a Singapore-based charterer said.

Middle East to China freight rates for 10,000 tonne vessels were in the low-to-mid $50s/tonne (€37.50/tonne) for the week ended 23 August, according to ICIS data.

($1 = €0.75)

By: Muhamad Fadhil
+65 6780 4356

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